May 8 (Bloomberg) -- Sharp Corp., the unprofitable maker of
Aquos televisions, rose the most in three weeks in Tokyo trading
after media reports it will get an increased credit line from
lenders and supply Apple Inc.’s new iPhone.

The stock surged 6.3 percent to 369 yen at the close of
trade, the biggest gain since April 15. Sharp will get a credit
line of 150 billion yen ($1.5 billion) from lenders, the Nikkei
newspaper reported. Details will be set this week, two people
familiar with the matter said. The company will produce screens
for the iPhone starting in June, Nikkan Kogyo said. The
electronics maker will set an operating profit target of as much
as 140 billion yen, Sankei reported.

Sharp, which has 200 billion yen of convertible bonds due
this year, has been seeking investments from rivals and selling
assets as its cash pile shrinks amid continued losses in its
liquid-crystal-display business. The Osaka-based company, which
is due to release its mid-term plan on May 14, has 360 billion
yen of loans due June 30.

“These reports are positive for Sharp’s financing and
production,” said Keita Wakabayashi, an analyst at Mito
Securities Co. “But the news is not enough to solve the problem
Sharp encounters. The market simply reacted to the positive
news.”

IPhone Displays

Mizuho Financial Group Inc. and Mitsubishi UFJ Financial
Group Inc.’s banking units will set up the new credit line,
which is higher than a previous 100 billion-yen plan, Nikkei
said without attributing the source of the information. The
funds will help the company repay the bonds while the banks will
extend deadlines for the loans due in June, the newspaper
reported.

Sharp will start producing LCDs for Apple’s new iPhone as
early as June, Nikkan Kogyo reported, without saying where it
got the information.

The 2015 operating-profit target for Sharp will be set
between 130 billion yen and 140 billion yen, Sankei reported,
without saying where it got the information.

The company isn’t the source of the report on its mid-term
plan, Sharp said in a statement. Sharp isn’t in a position to
comment on lenders’ plans, spokeswoman Miyuki Nakayama said by
phone, declining to comment on the Apple supply report. Steve
Dowling, a spokesman for Apple, didn’t return a call seeking
comment.